Reading 4 Marketings Role in Strategic and Tactical Planning

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Reading 4 Marketings Role in Strategic
and Tactical Planning

• Presented by Lisa Cook Jessie Chung
• Date 12 Oct., 2004 Week3

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Introduction

• Overview
• Plan
• - Benefits of planning
• - Costs of planning
• Strategic planning
• - Marketings Role in Strategic Planning
• - Benefits
• - Strategies/Hierarchy Level
• - Marketing Strategy Components
• Supplement
• - Strategic and tactical planning
• - Can strategic planning pay off?
• Conclusion

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Overview

• Planning is about a desired future state.
• It aims to reduce the risk and uncertainty in
  the
• future.
• Planning is about looking at alternative
• courses of action (the strategies) and choosing
  
• one or more to implement (the actions/tactics).
• Strategy can be either deliberate or emergent.
• Strategy can be considered on different levels.

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Benefits of Planning

• Planning allows for problems to be
• anticipated as it forces managers
• to think in advance.
• Planning allows for a number of
• staff to work on a desired outcome.
• It can help with communication
• and reduce conflict.

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Costs of Planning

• The costs of planning include
• The resources that are used in the planning
• process
• Opportunity costs for wrong decisions.
• The risk of confidential matters being
• exposed and the planning process taking
• too long.

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Strategic Planning
Strategic planning includes various concepts of
strategy, and it also is the process of

• Diagnosing the firms external and internal
• environment
• Deciding on a vision and mission
• Developing overall goals
• Creating and selecting general strategies to
• be pursued
• Allocating resources

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Marketings Role in Strategic Planning
Focusing on the market and customer, there are
three key roles identified for marketing in
strategic planning.

• To determine optimal long term
• positioning in target markets.
• To develop strategies to reach
• firms objectives
• To negotiate with top management and other
• functional areas for support of marketing
• strategies.

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Strategic Planning ( Benefits)

• Help management team add a strategic
• dimension to its thinking.
• Help management deal successfully with
• unexpected events.
• Defines the corporate goals and objectives,
• and enables management to make
• decisions and to act to further goals.

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Strategic Plan ( Strategies )
Two kinds of strategies are generated by two
conditions because of the fickle consumers and
markets.

• Deliberate Strategy
• comes from precise intentions and
  outcomes
• and are clearly understood before actions are
• taken.
• Emergent Strategy
• Is developed to solve unexpected
  events. In
• addition, it is not incorporated into
  the formal
• planning concept.

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Strategic Plan ( Hierarchy Level )
At the strategy level, decisions are concerned
with the type of business, and whether to hold,
grow or divest.

• Corporate level strategies
• Business level strategies
• Product/market level strategies

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Marketing Strategy Components
Kotler (1967) defined marketing strategy have
five components.

• Market segmentation
• Market positioning
• Market entry strategy
• Market-mix strategy
• Time strategy

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Marketing Strategy Components (Con)
There are 10 components of marketing Strategy
components in general business.

• Ongoing review improve business marketing
  strategies.
• Conducting Market Research
• Customer Perspective
• Differentiating
• Creating Visibility

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Marketing Strategy Components (Con.)
6. Developing Channels to Distribute
Product/Service 7. Establishing a Marketing
Budget 8. Trial Error 9. Tracking Results
10. Following Through Customers
satisfaction/ product quality
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Supplement

• The difficulty of distinction between strategic
  and tactical planning.
• Ackoff (1966) claimed there are two reasons
• The distinction may be relative, depending on
  ones
• position.
• The distinction may be based on different
  aspects of
• the business.

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Supplement (Con.)
The differences between strategic and tactical
planning
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Supplement (Con.)
Why strategic planning may not pay off ?

• The organization did not consider the
• significant environmental, economic, and
• competitive conditions.
• The organization did not analyze external
• trends, and perceive insights into company
• strengths and weaknesses

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Conclusion

• Terminology must be clear and explained to the
  reader.
• Overall company strategies must be understood.
• Organizations need to consider the external and
  internal
• environments
• Decide the level of strategies.
• Strategies must be measured by the customers
• response.
• Plans should allow for emergent strategies to be
  added

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References
Shiner, D.V. 1998, Marketings Role in Strategic
and Tactical Planning, European Journal of
Marketing, vol. 22, issue 5, pp.23-31. Ackoff,
R. L. 1966, The meaning of strategic planning,
McKinsey Quarterly,, vol. 3, issue 1, pp.48-61,
viewed 1 Oct. 2004, Academic Search Elite
EBSCOhost. AN 7153778. Ashmore, Eileen,
General Business Components Of a Marketing
Strategy, viewed 10 Oct,2004. lthttp//www.foun
dlocally.com/Calgary/GenBusiness/MarketingComponen
tsOf Marketingstrategy.htmgt Gerstner, JR.
Louis, V 1972, Can strategic planning pay off?,
Business Horizons, vol. 15, issue 6, pp.5-16,
viewed 1 Oct. 2004, Academic Search Elite
EBSCOhost. AN 4523771 . Hellriegel, Jackson
Slocum 2002, MANAGEMENT A Competency-Based
Approach, South-Western College Publishing.
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